SINGAPORE — Leading multinational F&B manufacturing and distribution company, Food Empire Holdings Limited will be investing approximately US$80 million (including working capital) in a new freeze-dried soluble coffee manufacturing facility in Binh Dinh province, Central Vietnam. The new facility will be Food Empire’s second freeze-dried soluble coffee manufacturing facility and is part of the Group’s ongoing diversification strategy to grow its ingredients business.
When completed, it is expected to strengthen the Group’s position as one of Asia’s major players in spray-dried and freeze-dried soluble coffee. Under its ingredients business, the Group currently operates two facilities in India that manufacture spray-dried and freeze-dried soluble coffee, as well as a non-dairy creamer manufacturing facility in Malaysia.
Construction of the new facility will begin in the first quarter of 2025 and expected to be completed by early 2028. Its location in Vietnam is strategic as the country is one of the world’s largest producers of Robusta coffee beans. The new facility will have a larger capacity than the existing freeze-dried soluble coffee manufacturing facility in India. The investment will be funded by internal resources and bank borrowings.
The Company’s recent corporate actions reflect its stronger strategic focus on Asia. In May 2024, it announced its first coffee-mix production facility in Kazakhstan, Central Asia, to be opened by the end of 2025. In August 2024, it established a strategic partnership with Ikhlas Capital for the purpose of expanding the Group’s Southeast Asia and South Asia business segments.
Food Empire, Chief Executive Officer, Mr Sudeep Nair, said: “Growth from our South-East Asia segment, and in particular, Vietnam, has been the highest in recent years. We believe there is tremendous potential for even more growth and that is why we are putting focus in the region.
Over the past decade, we have invested significantly to expand our business vertically by producing some of the ingredients used in our key products, such as spray-dried and freeze-dried soluble coffee and nondairy creamer. The new Vietnam facility will not only enable us to continue with vertical expansion as part of our diversification strategy, but it will also open up new business opportunities within South-East Asia.”
Besides ingredients manufacturing, Food Empire’s main branded consumer business include products and brands that are sold in over 60 countries worldwide. Its brands enjoy market leadership position in core markets. In 2024, Vietnam has become the fastest growing market for the Group’s branded consumer coffee business.
The branded consumer business is currently supported by four manufacturing facilities in Malaysia, Vietnam, Ukraine and Russia that produce coffee mixes and other instant beverages for its various brands, as well as a snack manufacturing facility in Malaysia that produces potato crips for contract manufacturing as well as the Group’s own proprietary brands.
